Now, in our current economic downturn, it is more important than ever to consider options such as bi-weekly mortgage payments. The advantages of bi-weekly mortgage payments will be more than apparent after using the method for only a year. A person who makes monthly payments of $1,000 will, of course, pay a total of $12,000 towards his mortgage annually. If he converts those monthly installments to bi-weekly payments of $500, he will make 26 payments over the course of a year, for a total of $13,000. This means that he will add $500 towards principal every six months. During the course of the average extended loan, the borrower has the potential to save over $50,000. Shifting payments to a bi-weekly system can shorten the mortgage by close to eight years. It also allows a person to build equity in his home two to three times faster than he would by making monthly payments. This makes it easier to get out of debt and it makes it possible for a homeowner to increase his net worth.
The Best Way to Utilize the Advantages of Bi-weekly Mortgage Payments
It is one thing for a person to say he will make payments every two-weeks, it is an entirely different thing for him to do so. There are companies that offer conversion services. They will set it up so that the mortgage payments are automatically made.
“Money taken out without my involvement. . .?”
A lot of people get nervous about having money taken directly from their accounts, but it is the one surefire way to guarantee that all the advantages of bi-weekly mortgage payments will be taken advantage of. A person can closely monitor his debits and he can see the progress he is making on a regular basis.